The Court of Appeal has upheld a decision awarding a former sales employee more than KSh4.7 million after finding that his dismissal by Romageco Kenya Limited was unfair and unlawful.
In a judgment delivered on June 12, 2026, Justices W. Korir, L.M. Ndolo and Ahmed Issack dismissed an appeal by Romageco Kenya Limited and affirmed an earlier ruling of the Employment and Labour Relations Court in favor of former employee Hudson Kidaha Kisigwa.
The dispute arose from Kisigwa’s dismissal in May 2010 after nearly five years of service as a salesman. He had claimed that the company unlawfully terminated his employment while he was on sick leave and failed to pay commissions he had earned over several years. Kisigwa told the court that he had been hospitalized at Nairobi Hospital in April 2010 and was later granted sick leave. He alleged that while he was still unwell, the company accused him of financial impropriety, terminated his employment without a hearing, and published notice of his dismissal in a newspaper. Romageco argued that Kisigwa had failed to return to work after his sick leave expired and had also failed to account for money collected from customers. The company maintained that these actions justified his dismissal.
However, the Court of Appeal found that the employer failed to prove either allegation.
The judges noted that the company made no effort to contact Kisigwa after his sick leave ended and did not issue any show-cause letter or invite him to a disciplinary hearing before terminating his employment.
“An employer invoking desertion as a defense to a claim of unlawful termination must demonstrate tangible efforts to reach out to the employee,” the court said.
The judges also found that allegations of unremitted customer funds appeared to have surfaced only after the employee fell ill and were not supported by evidence that he had been given an opportunity to respond. The court agreed with the trial judge that Romageco lacked a valid reason for dismissal and failed to follow the procedural requirements set out in employment law.
On the issue of unpaid commissions, the appellate court rejected the company’s argument that the claim had not been proved. The judges found that the employee relied on sales records supplied by the company itself and that his contract expressly entitled him to commissions. The Court of Appeal also declined to consider a new argument by the company that part of the commission claim was time-barred, noting that the issue had not been raised during the trial.
In upholding the award of 12 months’ salary as compensation for unfair dismissal, the court pointed to what it described as aggravating circumstances surrounding the termination.
The judges noted that Kisigwa was dismissed through a newspaper notice while he was ill, was not given a certificate of service, and was not paid his terminal dues.
“The respondent’s dismissal was effected without decorum, in a manner inconsistent with the dignity owed to an employee,” the court said.
The appeal was dismissed with costs, leaving intact the award of KSh4.7 million granted by the Employment and Labor Relations Court.
